In addition to your CLA2 (Nordstorm & Walmart), please prepare a PowerPoint presentation summarizing your findings for CLA2. The presentation will consist of your major findings, analysis, and recomme

Introduction

The business that I chose is a cosmetics company whose aim is to maximize return on investment as well as maintain customer loyalty. This is where it implies that a business strategy is required. The aim of this paper is to identify the business strategy for the company. It focusses on the type of strategies, mission and vision statement which explains more elaborately what the company’s goals are and how it plans to achieve them, The SWOT analysis explains about the strengths, weaknesses, threats, opportunities and the generic competitive strategy of the company. All this is done with a special emphasis on a company dealing with the sale of high-end cosmetics on web-based platforms.

Business strategy

Business strategy can be argued out as the techniques that a company uses to organize its attributes with an aim of achieving a competitive advantage in the marketplace. (Grant, 2013) These attributes are either external stakeholders or internal stakeholders. Internal stakeholders include employees, technological framework and management structures. The employee as part of the strategy need to be motivated in order to ensure they become productive. International best employee practices anchor for high-performance work systems that recognize two important elements of HR. These are people and reward systems. The technological attribute is important because the company operates on the web which is fast-paced and quickly evolving with threats and opportunities. The management structure is important as it guarantees that the organizations run smoothly and effectively. External attributes include customers, communities, competitors, vendors and government entities. The company ought to lay down vendor policy that will enable sourcing of products affordable if it is operating at a profit. In addition, it needs to follow a customer-oriented approach that is devoid of overambitious administrative orientations. There is also a need to appreciate the role of sustainability in modern business endeavors. Sustainability calls for the organization to balance resource use with the needs of future generations while at the same time caring for the needs of local communities. Strategies also need to appreciate the role of government regulations and seek to successfully navigate these policies and regulations.

A business strategy is also defined as an art that a company employs in the marketplace with an aim of achieving a competitive advantage. The need to perform better than rivals in a perfect competition market is a vision of every company. There are several types of strategies, ranging from brand strategy, market strategy, talent strategy, and growth strategy.

The business strategy of the company will entail first defining the brand strategy. The company aims at selling luxurious cosmetics to Asian markets specifically China. China has a high demand for high-end cosmetics primarily from western economies. The brand shall be marketed as prestigious with an identity of an organic cosmetic that delivers on promises. The marketing strategy will entail streamlining the promotion message to suit the cultural and aesthetic perception of Chinese women. (A.Hitt, 2016) The medium of messaging shall be primarily on social media, and through emails. The talent strategy will entail outsourcing for marketing brains online and paying them through commissions for referrals. To achieve the company’s milestone, the growth strategy will comprise rapidly scouting for investors and borrowing additional capital from local creditors.

The mission statement of the company will be the preferred shopping destination for natural organic cosmetics for radiant and glowing natural skins. The vision will be to be a ceaseless dealer in cosmetics products that are continually innovative, affordable and competitive in the global market. The mission statement was arrived at after considering the increased sensitivity of synthetic cosmetics products in Asian markets. The vision statement arrived` after carefully considering the competitive landscape and the problem of perceived brand worth and loyalty in Chinese markets. (Fang & Jang, 2007) Chinese tends to see cheap products as being of low quality.

SWOT analysis

SWOT analysis happens to be a planning tool for strategy that is used to analyze and examine a company or organization opportunities and strengths at the face its threats and weaknesses. (Cadle, Eva, & Hindle, Cadle, J., Eva, M., & Hindle, K. (2014))The opportunities of a company are often seen in terms of perceived market penetration chances. (Jacob, 2012) Critical questions include whether the business criteria are sustainable and whether there are money making ventures to exploit. Identifying opportunity is the greatest skill that an entrepreneur should possess. (Jannesson, 2013) For the cosmetic company, there is a big market for high-end cosmetics in China which has been facilitated by Cross-border e-commerce. The prospects of growth in this trade are estimated to be worth around $60b in revenues. There is still a lot that an innovative company can do to tap on this. The strength of the company is a fast paced high tech technological platform with a nice and friendly user interface. The company also enjoys unwavering likes and comments on several social media sites such as Instagram from peers. However, the company has its share of weaknesses as well. There is a lack of adequate professionals, knowledgeable in trans-border e-commerce trade with China. In addition, the company faces threats such as chargebacks and related frauds, logistical problems leading to parcel delay to China, and periodic cyber-attacks. (Khanaferova, 2018)However, to achieve a competitive edge over rivals in the market, the company seeks to tap on innovation and product differentiation. Innovation entails availing competitive solutions to problems and challenges that arise. In addition, there is a need to ensure the product is different, as strategies such as price leadership cannot help the edge out competitors in the Chinese market. This target product will be uniquely sourced and packaged. There will also be a focus on ensuring that the product delivers on the promises to ensure brand loyalty.

Conclusion

In summary, formulating a business strategy is a salient practice if outpacing and outperforming competitors is to be realized in the marketplace. More also, there is a need for a company to avail a mission and vision statement that drives its direction and terms of service. Some of the strategies that a company needs to define succinctly are market, talent, and brand and growth strategy. The cosmetic company which was the focus of this theoretical disposition has laid down all these multi-level strategies. In addition, the SWOT analysis of the company reveals numerous opportunities and strengths in the marketplace. There are, however, weaknesses such as lack of trustworthy in payment gateways and threats such as consistent attacks from those who commit cybercrimes. To achieve a competitive advantage, however, the company shall focus on product differentiation.

References

A.Hitt, M. (2016). International strategy: From local to global and beyond. Journal of World Business, Volume 51, Issue 1, Pages 58-73.

Cadle, J., Eva, M., & Hindle, K. (Cadle, J., Eva, M., & Hindle, K. (2014)). Business Analysis. Swindon: BCS Learning & Development Limited.

Fang, C., & Jang, S. (2007). The Effects of Perceived Price and Brand Image on Value and Purchase Intention: Leisure Travelers' Attitudes Toward Online Hotel Booking. Journal of Hospitality & Leisure Marketing, volume 15, issue 3.

Grant, R. M. (2013). Contemporary Strategy analysis. New Jersey: Wiley.

Jacob, V. (2012). Strategy (1st ed. Bloomington: AuthorHouseTM.

Jannesson, E. (2013). Strategy. Berlin: springer.

Khanaferova. (2018). MARKETING STRATEGY IN E-COMMERCE.